Intel Corp on Wednesday announced preliminary fourth-quarter financial information with revenue of approximately $8.2 billion, down 20% sequentially and down 23% percent year over year. Revenue will be lower than the company's previous expectation, provided in November, 2008, as a result of further weakness in end demand and inventory reductions by its customers in the global PC supply chain.

The preliminary estimate of gross margin for the fourth quarter is at the bottom of the previous expectation of 55%, plus or minus a couple of points. Spending (R&D plus MG&A) is expected to be approximately $2.6 billion, lower than the previous expectation of approximately $2.8 billion. Restructuring and asset impairment charges are expected to be approximately $250 million, unchanged.

As a result of the year-end market price of Clearwire Corporation stock, Intel will impair the value of its investment, resulting in a non-cash charge to fourth-quarter earnings of approximately $950 million. The company now expects the net gain or loss from equity investments and interest and other to be a loss of between $1.1 billion and $1.2 billion versus a previous expectation of a loss of approximately $50 million.

The company is continuing to review its fourth-quarter results and will provide additional information in its previously scheduled earnings announcement on January 15.

Tags: Intel